Warning for petrol and diesel drivers as HMRC introduces new rules

A warning has been issued for petrol and diesel car owners as HMRC introduces new rules. HMRC has published new Advisory Fuel Rates (AFRs), effective from December 1, which include changes to the pence per mile (ppm) rates for both diesel and petrol company cars.

The changes, which will take effect from next month, on Sunday December 1, could impact how much road users and drivers in Birmingham and beyond pay to stay on the road, and if they need to upgrade their vehicles.

The rates from the taxman, which now operates under the Labour Party government in the wake of the general election victory back in the summer, are usually reviewed four times throughout the year in March, June, September and December.

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The rate for a diesel company car with an engine size of more than 2,000cc is cut from 18 to 17ppm, while the new AFR for a diesel vehicle with an engine from 1,601 to 2,000cc falls from 14 to 13ppm. For diesel cars up to 1,600cc, the new reimbursement rate will be 11ppm, down from 12ppm, HMRC has said.

All three rates for petrol company cars have also been cut, the taxman said. The AFR for petrol vehicles up to 1,400cc decreases by 1ppm, from 13-12ppm, and falls by the same amount for the 1,401-2,000cc bracket, from 15-14ppm. For vehicles with a petrol engine over 2,000cc, the AFR has been cut by 1ppm, from 24-23ppm.

LPG fuelled cars remain the same across the board with engines up to 1,400cc at 11p, between 1,401cc and 2,000cc at 13p and over 2,000cc at 21p. All electric vehicles remain at 7p, with hybrid vehicles being categorised as either petrol or diesel cars.

In the last September review, the rates remained largely the same, with minor adjustments to cars of certain engine sizes.